ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature Second Regular Session
	Senate: APPROP DPA/SE 9-0-1-0 | 3^rd Read 23-5-2-0 House: GE DP 9-2-0-2 | APPROP 12-1-0-0

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SB 1002: EORP; appropriation; resignation; retirement

Sponsor: Senator Leach, LD 11

Caucus & COW

Overview

Stipulates that an Elected Officials' Retirement Plan (EORP) member who gives notice of retirement by June 30, 2022 for a retirement date of no later than September 30, 2022 may receive pension payments for normal retirement if outlined requirements are met.

History

The Public Safety Personnel Retirement System (PSPRS) was established in order to provide a consistent, uniform and equitable statewide retirement program for the public safety personnel in Arizona.  Separate plans for Arizona's elected officials (EORP) and corrections officers (CORP) were established later on.  All three retirement plans are qualified governmental pension plans under the Internal Revenue Code.  Each system is governed by a nine-member board of trustees that is tasked with the fiduciary responsibility to serve its members and to protect the financial health of PSPRS, EORP and CORP (www.psprs.com).

Provisions

1. Allows an elected official who is a member of EORP and who gives an irrevocable notice of resignation by June 30, 2022 with a date of resignation and retirement of no later than September 30, 2022 to receive pension payments for normal retirement if the member meets either of the following:

a) Has attained 55 years of age with 10 years of credited service; or

b) Has attained 59.5 years of age with five years of credited service. (Sec. 1)

2. Prohibits a member who retires and subsequently becomes an elected official from doing the following:

a) Making contributions to the plan;

b) Accruing credited service while the retired member is holding office; and

c) Participating in the Elected Officials' Defined Contribution Retirement System. (Sec. 1)

3. Directs the employer to pay contributions at an alternative contribution rate as required and calculated in statute if a member retires and subsequently becomes an elected official, regardless of when the retired member returns to work. (Sec. 1)

4. Appropriates $60 million from the state General Fund in FY 2023 to the EORP Fund for the EORP unfunded liability. (Sec. 2)

5. Directs the PSPRS board of trustees to account for the appropriation in the June 30, 2023 actuarial valuation of EORP. (Sec. 2)

6. States that the appropriation is exempt from the provisions of statute relating to lapsing of appropriations. (Sec. 2)

7. Contains an emergency clause. (Sec. 3)

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11.                   SB 1002

12. Initials SJ  Page 0 Caucus & COW

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